TRENTON
- Criminal Justice Director Vaughn L.
McKoy announced that the Division of Criminal
Justice - Office of Insurance Fraud Prosecutor
has obtained a State Grand Jury indictment
charging a Monmouth County attorney with
falsifying records and stealing more than
$88,000 in insurance disability monies
to which he was not entitled.

According to Insurance Fraud Prosecutor
Greta Gooden Brown, John F. Rhody, 60,
River Road, Fair Haven, Monmouth County,
was charged with theft by deception (2nd
degree), and two counts each of falsifying
or tampering with records and contempt
of court (all 4th degree). If convicted
of all counts, Rhody faces up to 16 years
in state prison and a fine of up to $190,000.
Rhody also faces the possibility of the
imposition of civil insurance fraud fines.

The indictment alleges that between June,
1999 and July, 2002, Rhody, an attorney
formerly employed by the Ocean-Monmouth
Counties Legal Services Office, misrepresented
facts and falsified records in order to
obtain $88,000 in long term disability
to which he was not entitled. Rhody allegedly
created the false impression to Standard
Insurance Company that he was disabled
from all occupations, was not self employed,
had no hobbies, and was not a member of
any clubs or organizations. An investigation
by the Division of Criminal Justice -
Office of Insurance Fraud Prosecutor determined
that Rhody was actually working by buying
and selling more than 1,500 post cards
on Ebay and at several trade shows throughout
New York and New Jersey at the same time
he was purportedly disabled and collecting
disability insurance.

The indictment also alleges that Rhody
knowingly submitted false records about
his disability, occupation, and income
during a court proceeding in front of
Monmouth County Superior Court Judge Paul
A. Kapalko, Chancery Division, Family
Part, on March 19, 2002.

The
investigation further revealed that Rhody
was held in contempt of court for disobeying
two court orders issued by Judge Kapalko
- one issued on March 28, 2002 and the
second on May 2, 2002 - prohibiting the
sale of the postcards.

State Investigator Anthony Butler, Civil
Investigator Michael Troso, and Deputy
Attorney General Steven B. Farman were
assigned to the investigation. DAG Farman
represented the Division of Criminal Justice
- Office of Insurance Fraud Prosecutor
before the State Grand Jury. The case
was referred to the Office of Insurance
Fraud Prosecutor by Standard Insurance
Company.

“Far too often this office receives
allegations that persons who are disabled
are actually working and collecting disability
insurance,” said Fraud Prosecutor
Brown. “This indictment demonstrates
our resolve to prosecute persons who commit
disability insurance fraud. As it has
in the past, this office will vigorously
investigate and prosecute this type of
activity.”

The indictment, which was handed up to
Mercer County Superior Court Judge Maria
M. Sypek on Sept. 20, is merely an accusation.
The defendant is presumed innocent unless
and until proven guilty beyond a reasonable
doubt.